What is the capital gains tax allowance in the UK 2026/27?

The capital gains tax annual exempt amount (AEA) is £3,000 for individuals in 2026/27. This is a historic low — it was £12,300 just three years ago in 2022/23. The first £3,000 of net capital gains in the tax year is tax-free. The allowance cannot be carried forward to future years. For trusts, the AEA is £1,500.

What are the capital gains tax rates UK 2026/27?

CGT rates for 2026/27 are 18% for basic-rate taxpayers and 24% for higher and additional rate taxpayers, applied to most assets including shares, second properties and cryptocurrency. Business Asset Disposal Relief (BADR) applies at 18% on the first £1 million of qualifying business gains. Private Residence Relief means your main home is usually exempt.

Do I have to pay CGT when I sell my home?

No — your main residence is exempt from CGT under Private Residence Relief, provided it has always been your primary home. However, if you have let the property, have a very large garden, or have used part of it exclusively for business, partial CGT may apply. Second homes and buy-to-let properties are subject to CGT at 18%/24%.

When do I have to pay CGT on a property sale?

For UK residential property (not your main home), CGT must be reported and paid to HMRC within 60 days of completion. Missing this deadline triggers an immediate £100 penalty plus interest. This 60-day rule has caught many landlords by surprise — do not wait until your January self-assessment return.

Capital Gains Tax UK 2026/27: £3,000 Allowance, 18%/24% Rates & Planning Guide

Capital Gains Tax UK 2026/27: Rates, Allowances & How to Pay Less

Chandraketu Tripathi

Finance Editor, Kaeltripton

Published 4 Apr 2026

Last reviewed 4 Apr 2026

✓ Fact-checked

The CGT landscape in 2026/27 is the toughest in decades. The annual exempt amount has fallen from £12,300 (2022/23) to just £3,000. Rates rose in October 2024 and BADR increased again in April 2026. Active planning is now essential. 2026/27 Tax Year

Capital Gains Tax Rates 2026/27 — Verified

Asset Type	Basic Rate Taxpayer	Higher/Additional Rate	Notes
Shares, funds, crypto	18%	24%	Applies to gains above AEA
Residential property (not main home)	18%	24%	Must report within 60 days of completion
Business Asset Disposal Relief (BADR)	18%	18%	First £1m qualifying gains; rate rose from 14% in April 2026
Investors' Relief	18%	18%	Up to £1m qualifying gains
Carried interest (fund managers)	Income tax rate	Income tax rate	Changed to income tax from April 2026

Source: Rest Less tax rates 2026/27 guide; Hawsons tax rates 2026/27; MHA CGT guide; taxyz.co.uk CGT guide. Rates confirmed from multiple professional tax sources citing HMRC/GOV.UK authority.

Annual Exempt Amount — Historic Context

Tax Year	Annual Exempt Amount	Change
2022/23	£12,300	Baseline
2023/24	£6,000	−51%
2024/25	£3,000	−50%
2025/26	£3,000	Unchanged
2026/27	£3,000	Unchanged — frozen

The collapse in the annual exempt amount from £12,300 to £3,000 means many more investors now have CGT liability on routine portfolio rebalancing. Any gain above £3,000 triggers a mandatory HMRC report and a tax bill. Proactive planning using ISAs, pension contributions and phased disposals is now essential for anyone holding investments outside a tax wrapper.

Business Asset Disposal Relief (BADR) 2026/27

Tax Year	BADR Rate	Maximum Relief	Change
2024/25	10%	£1 million	Baseline
2025/26	14%	£1 million	Rate rose April 2025
2026/27	18%	£1 million	Rate rose April 2026 — now worth max £60,000 per person

BADR applies to qualifying business disposals including selling a business you've owned for at least 2 years, closing a company, or selling shares in a qualifying personal company. The rate has now tripled from 10% to 18% since 2024. Business owners planning an exit should review the timing of disposal carefully with a tax adviser.

The 60-Day Property Reporting Rule

When you sell a UK residential property that is not your main home (a buy-to-let, second home, or inherited property), you must: calculate the CGT due; report it to HMRC via a 60-day property return; and pay the tax owed — all within 60 days of completion. This is separate from your annual self-assessment return. Failure to comply results in a £100 immediate penalty plus interest at 7.75% (current HMRC late payment rate). This catches many landlords who assume they can wait until their January self-assessment return.

How to Legally Reduce Your CGT Bill

Strategy	How It Works	Annual Saving
Use your annual exempt amount	Ensure you realise £3,000 of gains each year — don't waste it	Up to £720 (higher rate)
Bed and ISA / Bed and SIPP	Sell assets outside ISA, buy back inside ISA/pension — resets cost basis	Tax-free future gains
Use spouse's allowance	Transfer assets to spouse before selling — both use £3,000 AEA	Up to £1,440/year (couple)
Offset capital losses	Losses realised in same year offset gains — report to HMRC even if no tax due	Full rate on offset amount
Pension contributions	Contributions reduce adjusted income — can convert 24% CGT to 18%	6% on gains in higher rate band
Charitable gifting	Gifts of assets to charity are CGT-exempt	Full CGT on gift value avoided
Hold in ISA/pension	Gains inside ISA and pension are CGT-free	All future gains sheltered

KAELTRIPTON VERDICT

CGT in 2026/27 is the most punishing it has been in years. The £3,000 annual exempt is at a historic low. Rates of 18%/24% are materially higher than the 10%/20% of 2024. BADR has risen to 18%. Every investor with assets outside an ISA or pension should review their CGT position annually and use phased disposals, spouse transfers and ISA allowances to minimise liability.

2026/27 — Rates from GOV.UK

Q: What is the CGT allowance UK 2026/27?

A: £3,000 annual exempt amount for individuals. Cannot be carried forward. Down from £12,300 in 2022/23.

Q: What are the CGT rates 2026/27?

A: 18% basic rate, 24% higher/additional rate on most assets. BADR at 18% on first £1m qualifying gains.

Q: Do I pay CGT on my home?

A: No — main residence is exempt via Private Residence Relief. Second homes and buy-to-lets are subject to CGT at 18%/24%.

Q: When must I pay CGT on a property?

A: Within 60 days of completion for residential property not your main home. Missing this deadline triggers penalties.

This article is for informational purposes only and does not constitute financial or tax advice. Always consult a qualified accountant or tax adviser for your personal circumstances. All rates and figures verified from GOV.UK and official sources, April 2026.

Kael Tripton

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Capital Gains Tax UK 2026/27: Rates, Allowances & How to Pay Less

Capital Gains Tax Rates 2026/27 — Verified

Annual Exempt Amount — Historic Context

Business Asset Disposal Relief (BADR) 2026/27

The 60-Day Property Reporting Rule

How to Legally Reduce Your CGT Bill

Stay ahead of your money

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Capital Gains Tax UK 2026: Rates, Allowance & How to Calculate Your Bill